lat_49.2608724 Archives | Airbtics

Home > Resources > Airbnb Rules >

Airbnb Rules in Vancouver is a comprehensive guide to give you an idea about the regulations and get you started with your journey.

July 11, 2023

Is Airbnb legal in Vancouver?

The answer is yes! Vancouver has a bylaw that prohibits renting rooms for fewer than 30 days, but it is (obviously) rarely enforced given the prevalence of Airbnb.

Currently, there are 824 Airbnb listings in Vancouver, with 50,3% of entire houses earning up to $2,870 a month, 2,6% managed by professionals, and 35,6% managed independently. Apart from complete houses, Vancouver’s Airbnb offerings include 3,6% of private rooms. According to vacation rental market data Airbtics, a 2-bedroom apartment in Vancouver can make up to $35,748 each year.

Here we will provide some useful information that can help you better understand the Airbnb Rules in Vancouver.

Short-Term Rentals Law

When it comes to the short-term rental license in Vancouver, the most important rule is that the home be your principal house. That is, you must spend at least 180 days of the year in it.
A homeowner must have both a license and approval from the strata body to rent out a room or the whole house. A legal habitation must also meet certain safety requirements, such as fire safety.

Airbnb rules in Vancouver

All short-term rental operators must have a business license and disclose their license number in all online postings and advertisements.

The rules for vacation rentals in Vancouver are as follows.

Permitted

Only operates from your major residence – the home where you live, as an owner or renter, and use for bills, identification, taxes, and insurance.
Secondary homes or basement suites if the operator lives there full-time and it is their principal residence.

Not Permitted

In ancillary buildings (such as a garage, art studio, trailer, or boat) or Rental 100 buildings.
Residences that are subject to the Empty Homes Tax (the tax applies to homes that aren’t the owner’s primary residence or aren’t rented for an extended period of time). Airbnb, a prominent short-term home rental service, offers both homeowners and visitors new options.

Reference| Airbnb.co

Pros and Cons of running Airbnb in Vancouver

Short-term rentals are vacation rental properties rented out on a short-term basis to guests, like hotels. This form of rental helps guests to feel more at ease and “at home” because the properties are typically designed in this manner.

A long-term rental is the most common sort of rental property utilized for residential purposes. This sort of rental property is usually protected by a long-term lease agreement with more binding terms than a short-term rental. Renting out their homes for a higher price than their mortgage allows them to generate regular income regardless of the market. Because it is more traditional and well-known, most people are more familiar with this sort of rental property.

Now that we’ve defined vacation rentals and long-term rental properties, let’s look at each component of rental properties that explains both the benefits and drawbacks of a short-term or long-term rental.

Pros

Flexibility – You have the option of renting for days, weeks, or months. You can rent as much or as little as you want. There’s also the possibility of going on a trip at any time and earning money while doing so!

Privacy – Short-Term Rentals are ideal for families. They provide guests with more privacy and space than standard hotels.

Earns more money than a long-term rental – It’s simple to calculate: $1500 for a vacation week vs. $1500 per month to rent for a year.

Good Deductions – There are numerous popular deductions available to rental property owners. Cleaning and maintenance, insurance, management fees, and utilities are just a few of the costs to consider. You may make a loss and avoid paying taxes entirely if you take enough deductions.

Tax Breaks – Short-Term Rental Owners receive the best home-related tax breaks.

Less Wear and Tear on the Property – With frequent renters, you can keep up with tiny repairs before they become major issues!

Social Advantages – There are a lot of interesting people in the world, and many of them travel! Your next acquaintances in a Short-Term Rental could evolve into lifelong buddies!

Cons

Inconsistent payments – If you rely on a stable income, a yearly renter is a much safer option. There’s a chance you won’t have a Short-Term Renter for weeks or months.

Must cover the utilities – Utility costs are usually paid by long-term renters. Short-term tenants don’t.

Increased risk – There is a higher danger of theft, breakage, or problem tenants because of the number of tourists going through your doors.

Requires extra effort – Running a Short-Term Rental requires more effort because you are the innkeeper. You’ll be in charge of collecting money, scheduling clients, and bringing in tenants. You’ll do it every week instead of every 5 years or so!

Additional maintenance expenses – As the landlord, you are responsible for housekeeping, pool maintenance, and general upkeep. Not always the case with a long-term renter.

Some HOA– Managed neighborhoods make it tough and complicated to rent short-term Rentals. People prefer comfortable, peaceful surroundings where they feel safe and know everyone, rather than random strangers coming and going at all hours. They may submit complaints, and some HOAs may sue Short-Term Rental Owners.

Conclusion

If you’ve made it this far, you’re thinking of starting an Airbnb.

We’ve been assisting folks like you, who are first-time Airbnb hosts. We don’t provide consulting since we aren’t experts in running Airbnb businesses; but, we do provide useful data to Airbnb hosts.

You may use the Airbtics dashboard to figure out how much money you can make doing Airbnb in your city. Unlike other online Airbnb income calculators, it will provide you with a lot more useful information, such as

which neighborhood to target,
which amenities are in high demand,
what is the market’s historical performance,
what are the occupancy rates of a two-bedroom house,
should I do a two-bedroom house or a three-bedroom house?

In that case, the tool might be too complex for you, visit our tutorials – With the data dashboard, you can get meaningful and actionable insights.

Well, if you are new, there are many Airbnb host communities on Facebook. Type “Airbnb host” in the Facebook search, and you’ll see plenty of active communities where you can get help from experienced Airbnb hosts.

To see full data of Vancouver– Click Here

FIND STATS FOR YOUR CITY – CLICK HERE

Annual Airbnb Revenue In Guanajuato City Mexico

Arnav April 26, 2024

Guanajuato City| Airbnb Market Data & Overview | Mexico Guanajuato City Airbnb Market Data & OverviewMexico Is it profitable to do Airbnb in Guanajuato City, …

Annual Airbnb Revenue in Phoenixville pennsylvania, USA

Arnav April 10, 2024

Phoenixville, Pennsylvania| Airbnb Market Data & Overview | USA Phoenixville, Pennsylvania Airbnb Market Data & Overview USA Is it profitable to do Airbnb in Phoenixville, …

Annual Airbnb Revenue in Midwest city oklahoma, USA

Arnav April 10, 2024

Midwest City, Oklahoma| Airbnb Market Data & Overview | USA Midwest City, Oklahoma Airbnb Market Data & Overview USA Is it profitable to do Airbnb …

Annual Airbnb Revenue in Joseph oregon, USA

Arnav April 10, 2024

Joseph, Oregon| Airbnb Market Data & Overview | USA Joseph, Oregon Airbnb Market Data & Overview USA Is it profitable to do Airbnb in Joseph, …

Annual Airbnb Revenue in Knoxville tennessee, USA

Arnav April 10, 2024

Knoxville, Tennessee| Airbnb Market Data & Overview | USA Knoxville, Tennessee Airbnb Market Data & Overview USA Is it profitable to do Airbnb in Knoxville, …

Annual Airbnb Revenue In São Paulo Brazil

Arnav April 29, 2024

São Paulo| Airbnb Market Data & Overview | Brazil São Paulo Airbnb Market Data & OverviewBrazil Is it profitable to do Airbnb in São Paulo, …

Table of Contents

Add a header to begin generating the table of contents

Introduction

Vancouver is the most expensive Canadian city to live in, but what if we tell you that you can augment your income by renting out a property without actually owning it? Rental arbitrage enables this setup. It is a smart way to earn passive income with only minimal investment!

In this guide, we’ll explain rental arbitrage in layman’s terms and provide some expert tips. We also included the best areas to do rental arbitrage in Vancouver to help you make the best investment decisions. Stoked to learn more? Continue reading!

What is Rental Arbitrage?

Rental Arbitrage is a method similar to house hacking, where you rent out a spare room in your property. The difference between these two is you don’t need to own the house in rental arbitrage. Instead, you convince the property owner to allow you to sublease the house on Airbnb and VRBO.

Rental Arbitrage in Vancouver is applicable to multi-room apartments, houses, and condo units – as well as duplexes, and triplexes. It is a smart way to add a stream of income through the short-term rental of your subtenants. This allows you to pay your own rent and earn more. Here’s an example to help you understand rental arbitrage better.

Assume you are renting a duplex in Vancouver for C$1,800/month. You are living by yourself on either side and you decide to sublease the other on Airbnb. Let’s say you listed it for C$100 per day and got 80% occupancy. This will bring in approx C$2,600/month in revenue. Not only will it help you pay off your complete rent, but it will also give you a profit of C$800. This, in a nutshell, is called rental arbitrage.

Airbnb Legality and Regulations in Vancouver

The City of Vancouver requires all short-term rental operators to have a business license and post the license number in all forms of advertisements. The other important rules for vacation rentals in Vancouver are as follows:

Permitted

Only operates from your major residence – the home where you live, as an owner or renter, and use for bills, identification, taxes, and insurance.
Secondary homes or basement suites if the operator lives there full-time and it is their principal residence.

Not Permitted

In ancillary buildings (such as a garage, art studio, trailer, or boat) or Rental 100 buildings.
Residences that are subject to the Empty Homes Tax (the tax applies to homes that aren’t the owner’s primary residence or aren’t rented for an extended period of time). Airbnb, a prominent short-term home rental service, offers both homeowners and visitors new options.

Vancouver can fine short-term rental operators for:

Operating and listing or advertising Airbnb property without a valid business license
Having a short-term rental that isn’t their primary abode.
Managing a business’s Airbnb/Home-away/etc. account.
Allowing your visitors to stay in a risky location.

First-time offenders might face fines of up to C$1,000, while repeat offenders could face prosecution and fines of up to C$10,000. Due to a lack of larger monetary agreements, the city appears to be fining owners C$1,000 at a time.

If you’re still not sure, the City of Vancouver provides a comprehensive checklist that covers everything you’ll need to get a license.

How do I start an Airbnb arbitrage in Vancouver?

1. Convince the landlord

Let’s say you want to get into rental arbitrage. Now comes the big question, how to find a good property and how to convince the landlord? Later in the blog, we’ll be explaining how to find a good property by doing proper research using Airbnb analytics. In this section, we will be focusing more on how to convince landlords. As you’ll begin your rental arbitrage journey, you’ll come to know that this is the hardest part of the whole process.

You need to be prepared and well-researched about the Airbnb demand in your area. Good communication skills will also come in handy here. Another thing to always keep in mind: never sublease without informing the landlord! There will be a huge number of people coming in and out when you’re sub-renting. It will only be a matter of time before the landlord figures out what you’re up to, and you might end up getting in trouble.

For convincing the landlord, rule number one is always talking about the upsides. If you can rent the property on Airbnb, so can the landlord himself. You need to make a deal with the landlord that is beneficial to them. So they lease the property to you instead of renting it by themselves.

Points to tell an indecisive landlord.

Doing rental arbitrage is a full-time business. It doesn’t generate passive income like long-term leasing. You should try approaching older people who are looking for some sort of passive income.
They are more likely to agree to a fixed long-term lease. You can also reach out to full-time working professionals or business owners. They will also be happy with a source of passive income until their property is well maintained. This brings us to our next point.
You’ll take care of the house better than a normal renter. As you are using the property for Airbnb, you will maintain it very well to make sure you get better reviews. Having a beat-up property isn’t good for business and you are more likely to monitor it often.
Not monitoring it will affect your revenue a lot. You may end up paying a huge sum of money for damages done by someone else. So telling this to the landlord might instill some confidence in them.
You can ensure timely monthly rent. You can tell the landlord that doing Rental Arbitrage is a full-time business with ups and downs. It doesn’t guarantee fixed income at all like long-term leasing. But if they lease it to you, you’ll make sure to pay the lease no matter what. Either from the money made after rental arbitrage or from your savings. You need to ensure timely monthly lease payments to gain the trust of the landlord.

In conclusion, you need to take care of the property like your own. Make sure to timely pay the monthly lease and keep the situation beneficial for both parties. You can also use a free rental arbitrage email template and propose your ideas to landlords!

2. Ensure the property and gain landlord’s trust

Being on the safe side is always a good idea. Use the right tools to ensure the property is safe, and the neighbors can go on with their lives happily while you do rental arbitrage. Many landlords will have this concern when renting out their property to you. They will be worried about neighbors raising noise complaints, and it’s a legitimate concern. To help you with all these problems, here are some suggestions that you can implement:

SimpliSafe – These are home monitoring tools that you can install in the house to make sure no suspicious activity is happening there. Make sure to let the guests know about them and have their consent.
Auto host – Automatically screens problematic tenants.
Alexa Guard: If you already own an Alexa, you can use its Alexa guard feature to detect parties. It is an inbuilt feature that monitors changes in sound and sends you an alert in case the guests are having a party and making too much noise.
InsuraGuest – This insurance and tech company helps you with risk analysis and gives protection beyond Airbnb and VRBO policies.
Airbnb Calculator – Give your landlord ease of mind by providing income estimates backed by Airbnb data.

Pros and Cons

Be prepared for what you can expect from rental arbitrage in Vancouver:

Pros

- No purchase of property required
- Low upfront costs
- Opportunity to repeat and scale easily
- Generate profit for other investments or business

Cons

- Invest money and time in furnishing the property

AIRBNB OCCUPANCY RATES IN CANADIAN CITIES?

We conducted in-depth research & utilized our Airbnb occupancy rate calculator to feature the occupancy rates of major cities!

The initial cost of starting a rental arbitrage in Vancouver

You can expect to spend anywhere between C$3,000 to C$5,000. This cost includes deposit, furnishing, amenities, legal paperwork, and LLC Incorporation.

But doesn’t this contradict the low upfront cost of rental arbitrage? Well, these estimates vary from city to city. There is a possibility to do rental arbitrage for even less than this depending upon your situation and the type of property you lease.

Still, the amount is much less than investing in a new property and getting a mortgage of thousands of dollars. Plus you won’t be on the hook for property maintenance expenses and being stuck for years with debt.

But this doesn’t mean that rental arbitrage can be done with zero or on a very tight budget. There will be some upfront costs that you will have to prepare for by having some extra cash on hand. It will help pay off the lease during the off-season.

Expense 1: Rental Deposits

A rental deposit is going to be your first major expense. You will need money to be able to sign a long-term lease with the landlord. For that, you will need a security deposit for your first and previous month’s rent. Sometimes you can negotiate with the landlord and use the first month’s rent as a security deposit.

Expense 2: Furnishing

Ideally, you should aim to lease a place that is semi-furnished. Furnishing a place from scratch can add anywhere from C$3,000 to C$5,000 to your initial capital. Not choosing the right property can make rental arbitrage not so low cost, so choose wisely.

If the place is semi-furnished, then your best bet is to shop cheap for the rest of the stuff. You can go and find cheap supplies from places like Home Depot and IKEA. Sometimes even Walmart can have a hidden gem if you look closely.

Expense 3: Photography

It’s highly recommended to try DIY photography as a start to save money. You can even learn how to take the best Airbnb photos to highlight your listing! But if you have the budget, hiring a professional photographer is also an excellent option.

Expense 4: Cleaning Services

This is not a starting cost, but you will end up spending on cleaning eventually. The best way to save money is to do it yourself initially if you have the skills and experience.

If you have no experience or you don’t want to invest time in cleaning a place, then your best bet will be to hire a professional cleaner. This can cost you anywhere from C$50 to C$250 depending upon the size and location.

Expense 5: Legal Consultation

Maintaining a professional relationship with a real estate lawyer can be very helpful in the Airbnb business. Airbnb regulations keep updating and you would need some legal guidance on the way to adjust your business accordingly.

They can also come in handy if you face any legal issues with the landlord or guests. They can help in damage claims and insurance as well in case of any mishappening.

Best areas for Rental Arbitrage Vancouver

Some of the obvious places that you can think of in Vancouver are Gastown, Yaletown, East Vancouver, and many more. But two of the best choices for rental arbitrage top our list.

1. Coal Harbour

According to Airbtics Dashboard, Coal Harbour is the top market to start your rental arbitrage business. There are more than 136 Airbnb listings in the area with annual revenue of C$80,699 with a 91% occupancy rate.

2. Downtown Eastside

According to Airbtics Dashboard, Downtown Eastside is the second-best market to start your Rental arbitrage business. There are more than 217 with an average annual revenue of C$75,859 from an occupancy rate of 89%.

Conclusion

In summary, rental arbitrage in Vancouver can be a very profitable side income. Since it does not require you to purchase a property, it’s also practical for beginners trying to be real estate players without spending millions.

Leverage your rental arbitrage opportunities by using a free Airbnb profit estimator and determine the best areas that will bring long-term profitability!

🎉 FREE WEBINAR - July 24th, 11am / 8pm CET - Learn Airbtics in 7 Minutes - Revenue and Market Analysis Tips and Best Practices!

Is Airbnb legal in Vancouver?

Short-Term Rentals Law

Airbnb rules in Vancouver

Permitted

Not Permitted

Pros and Cons of running Airbnb in Vancouver

Pros

Cons

Conclusion

Quick Links

Quick Links

Introduction

What is Rental Arbitrage?

Airbnb Legality and Regulations in Vancouver

Permitted

Not Permitted

​​How do I start an Airbnb arbitrage in Vancouver?

1. Convince the landlord

Points to tell an indecisive landlord.

2. Ensure the property and gain landlord’s trust

Pros and Cons

Pros

Cons

The initial cost of starting a rental arbitrage in Vancouver

Expense 1: Rental Deposits

Expense 2: Furnishing

Expense 3: Photography

Expense 4: Cleaning Services

Expense 5: Legal Consultation

Best areas for Rental Arbitrage Vancouver

1. Coal Harbour

2. Downtown Eastside

Conclusion

Airbnb Data At Your Fingertips!

Get Started

Support

Our Customer Representative

Solutions

About Airbtics

Resources

Our Customer Representative

Free Webinar

Learn Airbtics in 7 Minutes

ARE YOU IN?

How do I start an Airbnb arbitrage in Vancouver?